I don't recall having this problem when running Open/Matchbox, but I may have over-looked it.

For reference sake I think I "ipk install aterm" got the package from the Beta3 feed at tyrannozarus.

When using Aterm under R198 and EvilWM navigating around folders and doing general stuff works fine, but when I try and use vi I've noticed two thingsH-I can't get to the point where I can run commands (i.e. by pressing the colon key)-When I scroll down the text file I can't scroll back up.

There's some file that exports a bunch of stuff either on boot or on the start of X11 (maybe .Xsession). You could add the term variable to that file to be exported every time you start your Zaurus/X11.